Moneyness
Definition, Meaning & Examples
Part of speech noun
Quick meaning: Moneyness is a noun meaning (derivative securities) The degree to which a derivative security is in the money, because of the relationship of the price of the underlying security to a conversion price or exercise price.
Meaning
(derivative securities) The degree to which a derivative security is in the money, because of the relationship of the price of the underlying security to a conversion price or exercise price.
More Meanings
- (economics, banking) The degree to which an asset approximates cash in its ready liquidity and the low transactions costs in realizing that liquidity.
Example Sentences
As an option's expiration date approaches only its moneyness has value.
In good times everything seems to have moneyness; in bad times, some money doesn't have much moneyness.
It is this undiscriminating acceptability which confers 'moneyness' on some things, regardless of the fact that others may also serve such subsidiary money functions as being a store of value or unit of account.
Word Forms
- moneynesses
Related Words
Related dictionary entries include monetizability, liquidity, mortgageability, dequity, nonconvertibility, remunerativeness.
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Sources & Attribution
FreeDictionaryAPI.com / Wiktionary · Original source · CC BY-SA 4.0
Dictionary data is provided by FreeDictionaryAPI.com and sourced from Wiktionary under its stated license.